Shearman & Sterling is advising Ardagh on its agreement with Ball Corporation and Rexam PLC to purchase certain metal beverage can manufacturing assets and support locations in Europe, Brazil and the United States for an enterprise value of $3.42 billion.
Pursuant to the agreement, Ardagh will acquire 10 beverage can manufacturing plants and two end plants in Europe, seven beverage can manufacturing plants and one end plant in the United States, two beverage can manufacturing plants in Brazil and certain innovation and support functions in Germany, the UK, Switzerland and the United States. The business will be the number three beverage can manufacturer globally, number two in Europe and number three in the United States and Brazil.
Ardagh expects to finance the acquisition with a combination of cash and secured and unsecured debt. The completion of the acquisition is subject to certain conditions, including regulatory approval acquisition, and is expected to close by the end of June 2016, simultaneous with the closing of Ball's acquisition of Rexam.
Ardagh Group is a global leader in glass and metal packaging solutions, producing packaging for most of the world's leading food, beverage and consumer brands. Following completion of this transaction, it will operate 110 facilities in 22 countries, employ over 23,000 people and have global sales exceeding $8.8 billion.